MINUTES OF THE

      SENATE COMMITTEE ON FINANCE

 

      Sixty-seventh Session

      June 1, 1993

 

 

The Senate Committee on Finance was called to order by Chairman William J. Raggio, at 4:00 p.m., on Tuesday, June 1, 1993, in Room 223 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

COMMITTEE MEMBERS PRESENT:

 

Senator William J. Raggio, Chairman

Senator Raymond D. Rawson, Vice Chairman

Senator Lawrence E. Jacobsen

Senator Bob Coffin

Senator Diana Glomb

Senator William R. O'Donnell

Senator Matthew Q. Callister

 

STAFF MEMBERS PRESENT:

 

Dan Miles, Fiscal Analyst

Bob Guernsey, Principal Deputy Fiscal Analyst

Steve J. Abba, Program Analyst

Birgit K. Baker, Program Analyst

Larry L. Peri, Program Analyst

Marion Entrekin, Committee Secretary

 

OTHERS PRESENT:

 

Fred L. Hillerby, Representative, Valley Hospital, Las Vegas,        Nevada, and Washoe Medical Center, Reno, Nevada

John Sarb, Administrator, Division of Child and Family Services,

  Department of Human Resources

Don Hataway, Chief Assistant Budget Administrator, Budget Division,    Department of Administration

 

 

Senator Raggio asked for committee introduction of the following bill draft request (BDR).

 

BILL DRAFT REQUEST 35-1930:   Revises provisions governing state          highway revolving account.   

 

      SENATOR COFFIN MOVED TO INTRODUCE BDR 35-1930.

 

      SENATOR GLOMB SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR RAWSON WAS ABSENT FOR THE VOTE.)

 

      * * * * *

 

 

For the information of the committee, Senator Raggio introduced

Amendment No. 610 (Exhibit C) to Senate Bill (S.B.) 159 that had been amended and passed at an earlier date.

 

SENATE BILL 159:        Requires state board of examiners to evaluate

            contracts it approves.

 

Senator Raggio referred the committee to Exhibit D, Amendment No. 609 to Assembly Bill (A.B.) 316, that had been amended and passed on May 24, 1993.  

 

ASSEMBLY BILL 316:      Makes appropriations to state board of          examiners for settlement of claim on behalf of            certain state employees.

 

Senator Raggio reviewed Amendment No. 449 (Exhibit E) to Senate Bill (S.B.) 139 with the committee.  He said this bill was heard on April 27, 1993, and amended and passed.

 

SENATE BILL 139:  Establishes program to mitigate environmentally detrimental effects of certain uses of land in Lake Tahoe Basin.

 

Senator Raggio opened the hearing for discussion of Senate Bill (S.B.) 494:

 

SENATE BILL 494:  Makes various changes relating to provision of medical care to indigent persons.

 

Senator Rawson commented this bill pertains to Nevada's Medicaid Provider Tax program approved by the 1991 legislature to conform with federal law.

 

Senator Glomb suggested an amendment be added to this bill that would provide for the participation of local hospitals and counties in the formation of a plan to provide for health care to indigent persons.

 

Senator Raggio opined this would be more appropriate as a letter of intent rather than to add this provision to the actual bill.  He remarked the federal parameters do not allow for anything that could be construed as a hold-harmless situation.

 

Senator Glomb asked if the letter of intent would insure participation by the hospitals and local government in the formation of a plan, and Senator Raggio said that would be the purpose of the letter of intent.  He added that he also believed a report should be submitted on a periodic basis from the hospitals and counties as to the impact of this provision.

 

Senator Glomb remarked that beginning July 1, 1994, is when the various entities would need to come together to begin laying the groundwork for the implementation of S.B. 494.

 

Senator O'Donnell asked if the passage of S.B. 494 would be to modify the provider tax that already exists to conform with federal regulations.

 

Senator Raggio answered it is his understanding the changes proposed by S.B. 494 are necessary because of the limitations that have been imposed by federal regulations and the Health Care Finance Administration (HCFA) which disallow any hold-harmless provisions or which do not allow for a tax to be imposed on only Medicaid revenues.  The passage of S.B. 494 would also allow  county revenues to be used for federal matching purposes.

 

Senator Rawson added that S.B. 494 would also stipulate that the appropriate flow of money would revert to the counties. 

 

Senator Raggio said there was an amendment proposed to amend section 8, page 5, line 41, with a subsection (d) that would allow a waiver for a financially distressed hospital if the federal government promulgates regulations that would allow for such a waiver.

 

      SENATOR RAWSON MOVED TO AMEND AND DO PASS S.B. 494 WITH THE AFOREMENTIONED AMENDMENT TO SECTION 8.

 

      SENATOR GLOMB SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Senator Raggio requested a motion for an appropriate letter of intent to be addressed to the Department of Human Resources, the counties and to the participating hospitals indicating the committee's intention that each of the entities participate in the further discussion and design of the procedures involved in the reformation of the tax.  Senator Raggio also requested the motion should stipulate that the letter of intent will request a report on a periodic basis be made to the Interim Finance Committee (IFC) in connection with these issues.

 

Senator Glomb pointed out the motion should also state a meeting of the entities should take place no later than July 1, 1994, to begin discussion regarding the impact of S.B. 494. Senator Raggio concurred with this suggestion.

 

Fred L. Hillerby, representing Valley Hospital, Las Vegas, Nevada, and Washoe Medical Center, Reno, Nevada, referred the committee to section 8 of S.B. 494 and pointed out if regulations have to be changed regarding the collection of the tax and the payment of the disproportionate share, the Interim Finance Committee (IFC) would be the proper place to have a public hearing so that the legislature will be aware of what is going on as well as the hospitals and the counties.

 

Mr. Hillerby further remarked the vagaries of the federal government action over the next 2 years concern the hospitals he represents and is why they would like to have the Senate Committee on Finance acting as the IFC to note any changes that may be made before they take place.

 

Senator Raggio believes this is an appropriate request and such action should take place before the IFC.  He suggested this be combined in a single letter of intent to include all of the requests previously mentioned.

 

      SENATOR O'DONNELL MOVED TO INCLUDE THE AFOREMENTIONED LETTER OF INTENT COVERING THE ISSUES STIPULATED.

 

      SENATOR GLOMB SECONDED THE MOTION.

 

Senator Raggio assigned Senator Rawson to deal with any related issues pertaining to S.B. 494.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Senator Raggio requested a status report from the subcommittee for  controller and data processing consolidation.

 

Senator O'Donnell stated the subcommittee felt in the consolidation of data processing the actual costs involved would be higher than the savings that were put forth by the executive branch.  They did a reversal of many of the data processing consolidation efforts and proposed a feasibility study that would review the intent of the consolidation of data processing centers and the computerization for different state agencies. 

 

Senator Raggio asked if the subcommittee's recommendations are

consistent with Senate Concurrent Resolution (S.C.R.) 5.

 

 

 

SENATE CONCURRENT RESOLUTION 5:      Directs Department of Data                Processing to conduct feasibility                   of consolidating state centers for                 data processing.

 

Senator O'Donnell answered in the affirmative.

 

Senator Raggio asked if S.C.R. 5 involves a legislative interim study.

 

Steve J. Abba, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, stated the way S.C.R. 5 is currently drafted it would be a departmental study and legislators could be involved as far as overseeing portions of the study.  The current Department of Data Processing's advisory committee consists of two

legislators, one from the Senate Committee on Finance and one from the Assembly Committee on Ways and Means.

 

Senator Raggio requested Mr. Abba review S.C.R. 5 with Senator O'Donnell to see what language needs to be changed to accommodate the full recommendations the subcommittee is addressing.

 

Mr. Abba said the Senate Committee on Finance and Assembly Committee on Ways and Means jointly agreed the Department of Data Processing should remain a cabinet level state agency under the legislatively proposed reorganization of state government rather than consolidating the agency as a division under the Department of Administration as recommended in the Governor's Executive Budget.

 

Mr. Abba referred the committee to page 1 of Exhibit F, Legislative Reorganization - Department of Information Services and Legislative Recommendations, from which he continued his testimony.

 

Mr. Abba pointed out the General Fund savings that were recommended with the consolidation amounted to approximately $654,000.  A number of actions the committee has already taken in transferring positions that were consolidated into the overall division back to the agencies has already been done and the $654,000 savings has already been somewhat negated. 

 

According to Mr. Abba one of the problems the subcommittee addressed is that the consolidation proposal did not really take into account the issue of agency to agency services with the consolidation proposal. 

 

Senator Raggio asked Mr. Abba to comment on item F reflected on page 2 of Exhibit F.

 

Mr. Abba said in the Governor's Executive Budget there were a number of enhancements that were recommended for the computer facility budget for the second year of the biennium based upon the evaluation of projected revenues coming into this budget from the

Welfare Division's Nevada Operations of Multi-Automated Data Systems (NOMADS) project. The Welfare Division and the Department of Data Processing were asked to re-evaluate the revenue coming in from NOMADS and based upon that re-evaluation, there was more money than anticipated when the Governor's Executive Budget was constructed coming in the first year which allowed for movement of some of the enhancement projects into the first year of the biennium.  This would include initiating the first phase of a disaster-recovering planning process in fiscal year 1994.

 

 

 

 

Information Services - Director's Office -Page 1680

 

Mr. Abba presented an overview regarding this budget by referring the committee to the budget closing action sheet on page 3 of Exhibit F. He also called the committee's attention to a chart reflecting the cost allocation for the 1993-1994 biennium for the director's office shown on page 4 of Exhibit F.

 

      SENATOR O'DONNELL MOVED TO RE-ESTABLISH THE BUDGET AND TO ADD THE ADJUSTMENTS INDICATED BY THE SUBCOMMITTEE ON BUDGET PAGE 1680 OF EXHIBIT F.

 

      SENATOR JACOBSEN SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Information Services - Planning Division - Page 1683

 

Mr. Abba reviewed the budget closing action sheet reflected on page 5 and a cost allocation chart for the 1993-1994 biennium on page 6 of Exhibit F.

 

      SENATOR O'DONNELL MOVED TO ADJUST THE BUDGET AND RE-ESTABLISH THE PLANNING DIVISION AS RECOMMENDED BY THE SUBCOMMITTEE ON BUDGET PAGE 1683 OF EXHIBIT F.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Information Technology Advancement Division  - Page 188

 

Mr. Abba referred the committee to the budget closing action sheet on page 7 of Exhibit F and pointed out the recommended modifications will delete the proposed Information Technology Advancement (ITA) Division. The Governor's Executive Budget had recommended the ITA planning functions be established and located in the proposed Department of Finance.

 

      SENATOR O'DONNELL MOVED TO DELETE THE PROPOSED ITA DIVISION AND ESTABLISH THE PLANNING DIVISION WITHIN THE PROPOSED DEPARTMENT OF INFORMATION SERVICES.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Information Technology Contracting Services - Page 264

 

Mr. Abba reviewed with the committee the recommended adjustments to this budget as reflected on pages 8 through 11 of Exhibit F.

 

      SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET WITH THE ADJUSTMENTS INDICATED ON PAGES 8 THROUGH 11 OF EXHIBIT F

      AND TO MAKE THE ADJUSTMENTS NECESSARY TO ANY BUDGETS PREVIOUSLY CLOSED BY THE COMMITTEE PERTAINING TO THE IDENTIFIED POSITIONS.

 

      SENATOR GLOMB SECONDED THE MOTION .

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Information Processing Services - Page 275

 

The recommended adjustments to this budget were explained to the committee by Mr. Abba from pages 12 and 13 of Exhibit F.

 

Mr. Abba said one major issue the committee should be informed of is based upon a re-evaluation of projected revenue in the second year of the biennium.  There is a potential that the computer facility will receive approximately $1.1 million in additional revenue over and above what is currently recommended in the budget and over and above what is recommended as far as transferring some of the money between fiscal years.  This is largely dependent upon the NOMADS project meeting the milestones that are currently anticipated to be met.  It is the recommendation of the subcommittee that a letter of intent be transmitted instructing the Department of Information Services that if the revenue now projected is received the users of the data processing facility recoup some of the benefits in the form of rebates and/or adjustments to their facility billings.

 

      SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET PURSUANT TO THE RECOMMENDATIONS OF THE SUBCOMMITTEE SHOWN FOR BUDGET PAGE 275 OF EXHIBIT F AND TO MAKE THE ADJUSTMENTS AS INDICATED.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * *

 

Commission on Economic Development - Page 588

 

Dan Miles, Fiscal Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, reviewed pages 1 through 3 of Exhibit G with the committee.  He also called their attention to page 4, a letter from Lieutenant Governor Sue Wagner, suggesting a letter of intent for the Commission on Economic Development to approach the IFC should they run out of funds for the Quick Start Job Training program.

 

Senator Raggio had some concern regarding rural grants by the Commission on Economic Development.  He said there were grants for rural Nevada programs that are no longer reflected in their budget and asked staff to obtain this information and report back.  In the meantime, he suggested this budget be held.

 

Office of Science, Engineering and Technology - New Budget

 

Senator Raggio asked if the formation of this new budget will accommodate Senate Bill (S.B.) 361.

 

SENATE BILL 361:  Establishes office of science, engineering and technology within the commission on economic development.

 

 

Mr. Miles responded that S.B.361 requires the Office of Science, Engineering and Technology be in a separate budget account.  He reviewed the budget closing action shown on page 6 of Exhibit G for this new budget account.

 

      SENATOR RAWSON MOVED TO APPROVE THE ESTABLISHMENT OF A BUDGET FOR THE OFFICE OF SCIENCE, ENGINEERING AND TECHNOLOGY AS RECOMMENDED BY STAFF ON PAGE 6 OF EXHIBIT G.

 

      SENATOR O'DONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Youth Community Services - Page 945

 

Larry L. Peri, Program Analyst, Fiscal Analysis Division, Legislative Counsel Bureau, referred the committee to the budget closing action sheet and corresponding attachments shown on pages 10 through 18 of Exhibit G.  He reminded the committee at an earlier meeting the recommendations for adjustments to this budget account had been explained in detail.

 

      SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF AND IN ACCORDANCE WITH PREVIOUS ACTION BY THE COMMITTEE REGARDING THE INCLUSION OF A $10,000 ANNUAL APPROPRIATION FOR PRIMARY MEDICAL CARE FOR EMANCIPATED CHILDREN.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR CALLISTER WAS ABSENT FOR THE VOTE.)

 

      * * * * *

 

Southern Nevada Child and Adolescent Services - Page 966

 

Referencing the last paragraph on the budget closing action sheet on page 19 of Exhibit G, Senator Raggio noted the Assembly Committee on Ways and Means added General Fund support of $60,134 in fiscal year 1994 and $61,517 in fiscal year 1995 for the Pathways Program for autistic children.  He asked the administrator of the Division of Child and Family services to explain this program to the committee.

 

John Sarb, Administrator, Division of Child and Family Services, Department of Human Resources, explained the Pathways Program had operated for about 2 years from a grant from the Rehabilitation Division but his division learned recently the Rehabilitation Division can no longer make that grant. The program provides home-based services to families of autistic children in an effort to keep the children out of residential placement.  He added that since there are only four beds available in the state for autistic children, being able to keep them in their homes is desirable. 

 

Senator Raggio asked where the Pathways Program originated and if there is any other program available for these children.

 

Mr. Sarb replied he was not certain how the name of the program was selected but the program started 2 or 3 years ago with a grant of approximately $44,000 from the Rehabilitation Division.  At the present time, the only other program that would come close to this one is an early childhood services program that only covers children to the age of 3 or 5 in some cases.

 

Senator Rawson opined that programs such as the Pathways Program

are important but suggested the budget be closed without including it for funding at this time with the idea of revisiting this budget  at a future date.

 

Senator Glomb noted if the Pathways Program is not funded, the state might have to resort to out-of-state placement for autistic children that will end up costing the state more money since General Fund money along with federal match money would have to be used.  She pointed out the Pathways Program is the only one she knows of in Nevada that serves the needs of autistic children and their families.

 

Senator Rawson commented there is no question it would be cost-effective to place funds into this program but it is impossible to identify at this time where the money will come from to fund it.  He reiterated the budget should be closed without funding for the Pathways Program.

 

      SENATOR RAWSON MOVED TO CLOSE THE BUDGET IN ACCORDANCE WITH THE RECOMMENDATIONS REFLECTED ON BUDGET PAGE 966 OF EXHIBIT G EXCLUDING A GENERAL FUND EXPENDITURE FOR THE PATHWAYS PROGRAM.

 

      SENATOR O'DONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR CALLISTER, SENATOR COFFIN, AND SENATOR GLOMB VOTED NO.)

 

      * * * * *

 

Youth Corrections Services - Page 977

 

Mr. Peri referenced pages 24 through 27 of Exhibit G and said this is the youth parole budget account.  He pointed out that earlier in the legislative session, Senator Raggio had polled the committee and the choice at that time was to restore this function or continue it as a state function.

 

Senator Raggio asked if any positions would have to be added to the budget.

 

Mr. Peri replied all of the 22.5 existing positions would be recommended to continue and no new positions would have to be added.

 

Senator Raggio asked what adjustment the Assembly Committee on Ways and Means added to this account for funding purposes.

 

Mr. Peri said there were several alternatives that were developed by the Assembly Committee on Ways and Means to fund the continuation of the youth parole budget account.  He advised the committee the alternatives are reflected on page 26 and the action taken by the Assembly Committee on Ways and Means on page 27 of Exhibit G.  Mr. Peri reviewed the alternatives and assembly action with the committee.

 

Senator Raggio pointed out the result of the action taken by the Assembly Committee on Ways and Means would enhance the budgets of both the Spring Mountain and China Spring Youth Camps and would do away with probation subsidies to the counties while retaining all of the youth parole functions.  He asked what the added cost to the General Fund would be as a result of this action.

 

Mr. Peri said there is no added cost but the counties would lose over $900,000 annually due to the loss of probation subsidies.  The

estimates the counties provided in writing to the Assembly Committee on Ways and Means indicated that the amount designated to be given to them of $566,000 was not reflective of the true cost to support the youth parole function.  The counties preferred that the youth parole function be retained by the state even though they did not support the fact that probation subsidies would have to be deleted to do this.

 

Senator Glomb remarked this is a difficult budget and recommended that the committee concur with the recommendations made by the Assembly Committee on Ways and Means.  She mentioned that by pulling back probation subsidies to the counties the state may eventually see an increase in the parole function.  She pointed out if the counties cannot provide the services on a local level they will not have much choice but to transfer the offenders to the state for services.

 

      SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF BASED ON THE ACTION BY THE ASSEMBLY COMMITTEE ON WAYS AND MEANS.

 

      SENATOR JACOBSEN SECONDED THE MOTION.

 

      THE MOTION CARRIED.  (SENATOR RAWSON VOTED NO.)

 

      * * * * *

 

Youth Alternative Placement - Page 981

 

Mr. Peri explained the adjustments and recommendations for this account by referencing page 28 of Exhibit G. He suggested a letter of intent be included to authorize that funding provided for out-of-state placements shall only be expended for the contract placement of serious, chronic juvenile offenders in secure placement facilities.

 

      SENATOR O'DONNELL MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF AND TO INCLUDE A LETTER OF INTENT AS OUTLINED ON BUDGET PAGE 981 OF EXHIBIT G.

 

      SENATOR RAWSON SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Probation Subsidies - Page 984

 

The budget closing action shown on page 29 of Exhibit G was reviewed with the committee by Mr. Peri who said the adjustments will completely eliminate the budget account.

 

      SENATOR GLOMB MOVED TO CLOSE THE BUDGET AS RECOMMENDED BY STAFF.

 

      SENATOR O'DONNELL SECONDED THE MOTION.

 

      THE MOTION CARRIED UNANIMOUSLY.

 

      * * * * *

 

Southern Nevada Children's Home - Page 1005

 

Senator Glomb commented at an earlier meeting the Budget Division said they would provide the committee with information concerning the youth that are served by this account.

 

Mr. Sarb said this budget contemplates the privatization of the Southern Nevada Children's Home effective January 1994 at which point the cost for the care of the children will be paid out of the Youth Community Services budget account.

 

Senator Raggio asked how much money is in budget account 3229.

 

Mr. Sarb said he did not have the exact figure but it was approximately $9 million.

 

Senator Raggio asked what amount is being allocated out of that budget to handle these cases.

 

Mr. Sarb said the division has not received privatization bids yet but are expecting somewhere in the $50 to $55 range.  They have calculated that at $50 per child it will cost about $775,000 for the children in each year of the biennium.

 

Senator Glomb pointed out the issue was there was no additional money moved into budget account 3229 to cover the cost of care for the children.

 

In the interest of time, Senator Raggio asked Mr. Sarb to appear before the committee at 8:00 a.m. the next day (June 2, 1993) and to have something definite showing the relationship between the two budget accounts to make certain the cases are accommodated. 

 

Mr. Sarb answered in the affirmative but stipulated it will be difficult to provide the information requested because of the $9 million that is in budget account 3229.  When he testified before the Assembly Committee on Ways and Means, he advised them that part of the federal funding that goes into budget account 3229 will be dramatically affected by child welfare reform.  As a result, that whole budget account is up in the air. Depending upon what happens federally, the Division of Child and Family Services  will have to make some changes, but they will not know what the changes will be until approximately October 1993.  He believes at this time what is reflected in budget account 3229 is probably the best that can be put together at this time.

 

Senator Raggio asked Mr. Sarb if he could assure the committee that there are sufficient funds to accommodate approximately $775,000 each year within that budget to accommodate that program and not hamper the other functions in that budget.

 

Mr. Sarb replied, "I believe to the extent we can know that today, the answer is yes."

 

Senator Glomb said she wished to have a direct answer to a direct question:

 

      Was the money in this account that was for the care of the children transferred from that account to this other budget account so that these children had monetary coverage, or is that $9 million a reflection of just plain growth and not the addition of the children you need to serve out of this account?  That should be a very simple accounting measure...and it has been weeks now that I have been waiting for an answer to a simple question.

 

Senator Raggio reiterated, "When the budget was created with the deletion of this budget and the intent to privatize this program, was the money placed into budget 3229 to accommodate this program."

 

 

 

Mr. Sarb answered, "I would have to guess the answer to that question is no it was not because now we are talking about a projection of paying for children...42.5 in Southern Nevada Children's Home....Those are being fit into a budget account that typically takes care of 1500 or 1600 children....

 

Senator Raggio asked if the money was put there in lieu of being placed in the Southern Nevada Children's Home Budget.  He further

inquired, "If you are going to privatize it how are you going to pay for it?"

 

Mr. Sarb said, "I would say no.  It will be paid from account 3229, category 11.  Was the money moved?  The answer to that question is no."

 

Senator Glomb lamented there does not appear to be money for the care of the children, they were just forgotten in the budget.  She asked how much exactly was left out of the budget for the care of the children.

 

Don Hataway, Chief Assistant Budget Administrator, Budget Division, Department of Administration, commented, "What I hear John (Sarb) saying is that, out of the 1500-plus kids they serve out of this other account, the 42 kids were taken into consideration when the  budget was put together."

 

Senator Raggio and Senator Glomb said they did not hear Mr. Sarb say that.

 

Mr. Sarb interjected:

 

      Is there going to be a problem paying for the children from the Southern Nevada Children's Home in that facility in the coming biennium?  There may be but not because of this privatization effort.  It is because all of the funding for that account is in federal flux.  If you are going to ask me in January if I can pay for those children, the answer would be yes, I think we can do that.

 

Senator O'Donnell asked if this is the same budget account that pays for all of the foster parents, and Mr. Sarb answered in the affirmative.

 

Senator O'Donnell responded, "Is this the same John Sarb that came into [the Senate Committee on] Human Resources [and Facilities] and told the foster parents they would all get a raise?"

 

Mr. Sarb replied he has never said that to foster parents.

 

Senator O'Donnell said there is a bill in the Senate Committee on Human Resources and Facilities to that effect.

 

Mr. Sarb concurred there is a bill, and he testified in support of it.  He also testified money would have to be added in order to finance that raise.

 

Senator O'Donnell noted the money would be added to budget account 3229, category 11, which would be the same account to be used to fund the privatization of the new children's home.

 

Mr. Sarb agreed with this comment and added, "And other group care."

 

 

Due to time constraints, Senator Raggio adjourned the meeting at

5:45 p.m. but pointed out further discussion will be necessary regarding this issue.  He reminded Mr. Sarb to appear before the committee at 8:00 a.m. tomorrow morning for further testimony.

 

 

 

                            RESPECTFULLY SUBMITTED

 

 

 

 

                                                    

                             Marion Entrekin,

                             Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                   

Senator William J. Raggio, Chairman

 

 

 

DATE:                              

 

??

 

 

 

 

 

 

 

Senate Committee on Finance

June 1, 1993

Page 1